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Roku (ROKU) Gains But Lags Market: What You Should Know

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In the latest trading session, Roku (ROKU - Free Report) closed at $87.81, marking a +0.01% move from the previous day. This change lagged the S&P 500's 3.41% gain on the day. At the same time, the Dow added 3.44%, and the tech-heavy Nasdaq gained 2.58%.

Prior to today's trading, shares of the video streaming company had lost 9.76% over the past month. This has was narrower than the Consumer Discretionary sector's loss of 14.3% and the S&P 500's loss of 10.46% in that time.

Wall Street will be looking for positivity from ROKU as it approaches its next earnings report date. On that day, ROKU is projected to report earnings of -$0.46 per share, which would represent a year-over-year decline of 411.11%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $282.52 million, up 36.71% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of -$1.51 per share and revenue of $1.52 billion. These totals would mark changes of -190.38% and +34.83%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for ROKU. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 22.33% lower. ROKU is currently sporting a Zacks Rank of #3 (Hold).

The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 145, putting it in the bottom 44% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.


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